Bass, Berry & Sims attorney Michael Dashefsky provided insight on the antitrust review of the proposed merger between Dick’s Sporting Goods and Foot Locker. The Federal Trade Commission (FTC)’s Hart-Scott-Rodino review period was set to expire on July 23. Since the publication of the article on July 22, the parties resubmitted a notification to the FTC and extended the regulatory review period.
Michael speculated the reason the parties may have pulled their filing and refiled is because the FTC may have expressed some antitrust concerns and needed more time to conduct their initial investigation. Michael stated that it also “could be related to how busy the agency is … And we don’t know anything about how quickly they started this investigation.”
Michael, who was part of the team advising Hibbett on the acquisition by JD Sports Fashion, said one issue that the FTC is likely to consider in analyzing the Dick’s/Foot Locker merger is market definition: “Are they really competing in the same product market?” He added, “Dick’s offerings are much, much broader, offering outdoor gear, baseball and golf equipment, and more. Furthermore, their stores are significantly larger. Many Foot Locker stores are in malls, while Dick’s are often standalone with multi-floor footprints. Further, people who shop at Dick’s are often spending longer in stores for other things than just sneakers, which is not the case when customers visit Foot Locker.”
The full article, “FL/DKS: Parties May Pull and Refile or Push Through,” was published by CTFN on July 22. The content is available via subscription here.